Determinants of Capital Adequacy Ratio and Non-Performing Loans on Stock Price with Return on Asset as Intervening Variable in Commercial Banks Listed on the LQ45 index
Short Communication about Qualitative and Quantitative Knowledge
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August 12, 2023Determinants of Capital Adequacy Ratio and Non-Performing Loans on Stock Price with Return on Asset as Intervening Variable in Commercial Banks Listed on the LQ45 index
ABSTRACT :- This study aims to analyze the effect of CAR and NPL to Stock Price with ROA as an intervening variable of companies listed on the LQ45 index on the IDX in 2017-2022. The research methodology used is quantitative methods. Types and sources of data used are panel data and secondary data obtained from the IDX website. The sampling technique used was purposive sampling. The data analysis technique used is Path Analysis, Panel Regression Analysis, multiple linear regression analysis and Sobel Test Calculations. The results of this study indicate that CAR (X1) has a significant positive effect on ROA (Z). Meanwhile, NPL (X2) has a significant negative effect on ROA (Z). CAR (X1) has no significant effect on Stock Price (Y). NPL (X2) has a significant negative effect on Stock Price (Y) and ROA (Z) has a significant positive effect on Stock Price (Y). And the Sobel Test result shown that the existence of ROA as an intervening variable can mediate the effect of CAR and NPL on Share Price of companies listed on the LQ45 on the IDX in 2017-
2022.
KEYWORDS – Capital Adequacy Ratio, Non-Performing Loan, Return on Asset, Stock Price